Business Start Up Grant NZ: How to Get Funding in 2025

If you’re out of work in New Zealand and dreaming of starting your own business, you’ve probably wondered whether the government can help with the costs. The answer is yes — through the Self-employment start-up payment, you could receive up to $600 per week for 28 weeks. This guide walks through the main grants available, how to apply, and what to do if you have no capital at all.

Maximum weekly payment from Self-employment start-up payment: $600 ·
Duration: up to 28 weeks ·
Total maximum from Self-employment start-up payment: $16,800 ·
New to R&D Grant maximum: up to $10,000 ·
Number of government grants listed on business.govt.nz: over 20

The government’s main offering is the Self-employment start-up payment, but there are several other targeted grants for specific situations.

How to get money to start a business in NZ?

Overview of funding options

• Government grants: Self-employment start-up payment, New to R&D Grant, regional funds (business.govt.nz)
• Loans: banks, community lenders, and microfinance (Canstar New Zealand (financial comparison experts))
• Crowdfunding and private investors: platforms like PledgeMe, angel networks (LegalVision New Zealand (business law specialists))

Government grants vs. loans vs. other sources

Grants do not require repayment, which makes them the most attractive option. Loans need to be paid back with interest. Crowdfunding and private investors give up equity or rewards. According to Canstar New Zealand, the Self-employment start-up payment is specifically for people at risk of long-term benefit dependency.

Self-employment start-up payment details

The Self-employment start-up payment provides up to $600 per week for 28 weeks, totalling $16,800. It is available to those who are out of work, aged 16 or older, not receiving NZ Super, and disadvantaged in the labour market (Work and Income).

The implication: the Self-employment start-up payment is a targeted safety net, not a general business grant. It’s designed for people who would otherwise be on a benefit, not for anyone with a business idea.

What grants are available for business start-up?

Government grants: New to R&D, regional, and sector-specific

• New to R&D Grant: up to $10,000 for startups new to research and development (business.govt.nz)
• Regional grants: Provincial Growth Fund, Callaghan Innovation vouchers (business.govt.nz)
• Industry-specific schemes: e.g., for agritech, creative industries (business.govt.nz)

Community and Māori business grants

Māori business grants are available through Te Puni Kōkiri (Ministry of Māori Development) and other agencies. They require Māori ownership or connection (business.govt.nz). There are also community trust grants and local council initiatives.

Private and non-profit grant programs

Organisations like the LegalVision New Zealand guide notes that some private companies and non-profits offer grants, often with specific eligibility criteria such as social enterprise focus or location.

The pattern: government grants are the most accessible, but they come with strings attached — residency, unemployment status, and business type restrictions.

Is there a grant for starting up your own business?

Eligibility criteria for the Self-employment start-up payment

• Out of work, aged 16+, not qualified for NZ Super (Work and Income)
• Disadvantaged in the local labour market (Work and Income)
• At risk of long-term benefit dependency (Work and Income)
• Must be starting a new business (not restarting a previous one) (Work and Income)
• Must have essential start-up costs (Work and Income)
• Residency: ordinarily resident in New Zealand, with a valid visa status (Work and Income)

Other grants and their requirements

The New to R&D Grant requires the business to be a registered company or limited partnership, and be new to R&D activities (business.govt.nz). Māori grants require Māori ownership or affiliation.

When grants are not available – alternative funding

If you don’t meet the eligibility criteria, consider Flexi-wage for self-employment (business.govt.nz), or look into microloans from community organisations. Canstar New Zealand also suggests bootstrapping with personal savings or part-time work.

The trade-off: grants are free money but have narrow eligibility. Loans and other sources are more flexible but come with costs.

What is start-up relief for entrepreneurs?

Definition of start-up relief in New Zealand

Start-up relief refers to tax incentives and reduced compliance costs for new businesses. For example, the R&D tax incentive allows eligible businesses to claim a 15% tax credit on qualifying R&D spending (business.govt.nz).

Tax incentives and other support

• R&D tax incentive: 15% credit on eligible R&D expenditure (business.govt.nz)
• Start-up relief through MBIE Innovation Services: grants, tax incentives, and support (business.govt.nz)
• Reduced compliance costs for small businesses: e.g., simplified GST reporting (business.govt.nz)

How to access relief programs

Businesses can apply through the MBIE Innovation Services portal. The process typically involves submitting a business plan and demonstrating eligibility (business.govt.nz).

Why this matters: start-up relief reduces the financial burden in the early years, but it’s not a direct cash grant — it lowers your tax bill or compliance costs.

How to start a business in NZ with no money?

Using government grants as a capital source

The Self-employment start-up payment can provide initial capital — up to $16,800 over 28 weeks. This is enough to cover basic start-up costs like registration, equipment, and marketing. The New to R&D Grant does not require matching funds, making it accessible for those with no savings (business.govt.nz).

Bootstrapping and low-cost business models

• Start a service-based business (e.g., consulting, cleaning, dog walking) with little upfront cost
• Use free online tools: business.govt.nz guides, free business plan templates
• Work from home to avoid rent
• Barter skills instead of paying for services

Leveraging community resources and mentoring

Regional business partners (RBPs) offer free mentoring and advice. The business.govt.nz website has a directory of RBPs. Also, organisations like LegalVision New Zealand provide free resources for startups.

The catch: without any capital, you’ll need to be extremely resourceful. Grants can help, but they won’t cover all costs. Many successful NZ entrepreneurs started with a side hustle while on a benefit.

Step-by-Step Guide to Applying for a Business Start Up Grant in NZ

1. Check your eligibility for the Self-employment start-up payment: out of work, aged 16+, not on NZ Super, disadvantaged in labour market, at risk of long-term benefit dependency, and meeting residency criteria (Work and Income).
2. Prepare a business plan that outlines your business idea, start-up costs, revenue projections, and how the grant will be used. Work and Income requires a viable business plan (Work and Income).
3. Contact Work and Income to discuss your application. You can do this by visiting your local office, calling, or using the online portal. They will assess your eligibility and may refer you to a business advisor (Work and Income).
4. Submit your application with the required documents: proof of identity, residency status, business plan, and evidence of start-up costs. The payment is usually made in weekly instalments (Work and Income).
5. If rejected, explore alternatives like Flexi-wage for self-employment, New to R&D Grant, or community grants. Check the business.govt.nz grants page for a full list.

You may be able to get a Self-employment start up payment if you’re out of work, and aged 16 or older and not qualified to receive NZ Super, and disadvantaged.

— Work and Income New Zealand

Services administered by MBIE Innovation Services offers grants, tax incentives, and startup support to help businesses to drive innovation.

— Ministry of Business, Innovation and Employment (MBIE)

For New Zealanders with no capital, the choice is clear: apply for the Self-employment start-up payment if you’re unemployed and meet the eligibility criteria, or explore alternative grants and bootstrapping strategies. The system is designed to help those who need it most, but it requires a solid business plan and persistence.

For a detailed breakdown of eligibility criteria and application steps, check out our guide on small business grants eligibility for New Zealand startups.

Frequently asked questions

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